NLIS 2
August 15, 2005
(Fisheries and Aquaculture)
Minister requesting federal action on EU shrimp tariff
Fisheries and Aquaculture Minister Trevor Taylor is today calling on
the federal government to step up its efforts to find a solution to
the high European Union (EU) tariff on Canadian shrimp that may
force an early closure of the province�s shrimp industry,
potentially throwing approximately 3,800 people out of work.
Minister Taylor is requesting an urgent meeting with federal
International Trade Minister James Peterson to immediately develop a
strategy to eliminate the tariff.
Market conditions exacerbated by the high 20 per cent tariff on
product entering the EU are making the processing of shrimp at this
point in the season unfeasible. The season usually extends into
October. The limited annual quota of 7,000 tonnes of shrimp that is
permitted into the EU at a reduced tariff of six per cent has been
filled, effectively shutting the province out of that competitive
market for the rest of the year.
�We are the world�s largest producer of cooked and peeled cold-water
shrimp, yet all of our major competitors have preferred access to
the most lucrative market in the world, which places us at a major
disadvantage,� Minister Taylor said. �The Canadian government has to
make finding a solution to this long-standing impediment a greater
priority to ensure the industry�s long-term growth. Any movement on
this issue would benefit all Canadian producers, not just those in
Newfoundland and Labrador. I understand Quebec and the other
Atlantic Provinces are facing similar circumstances.�
It is expected that only 65 per cent of the 66,000 tonne inshore
shrimp quota will be landed this year because of market conditions.
This affects roughly 1,800 harvesters and 2,000 plant workers across
the province.
�It is vital that the Government of Canada move to have the European
Union eliminate tariffs on Canadian cooked and peeled shrimp,�
Minister Taylor said. �I personally met with the Canadian High
Commissioner in London in November and reiterated the province�s
position that the tariffs must be eliminated on cold water shrimp.
There was also some internal discussion within the EU at that time
and during the Cold Water Prawn Forum on possible changes to the
tariff, but that hasn�t happened.�
Canadian producers continue to face a 20 per cent tariff on product
entering the European Union, whereas Greenland, Norway, the Faroe
Islands and Iceland are tariff free. The high tariff limits the
ability of Newfoundland and Labrador producers to access this
market. The United States is not a viable alternative as market
prices there are low, resulting in low profit margins. This is
exacerbated by the rise in the past 12 months of the Canadian dollar
against U.S. currency.
The Government of Newfoundland and Labrador has been seeking relief
from the high tariffs on cooked and peeled shrimp entering the EU
for 10 years. While some progress has been made with the
establishment of a limited quota at a lower tariff rate, competing
nations do not face similar restrictions.
Media contact: Tracy Barron, Communications, (709) 729-3733 or
690-6157
2005 08 15
12:10 a.m. |